All Forum Posts by: Jarrod Clavelle

@Jarrod Clavelle You also will want to get copies of the minutes from the last couple of condo association meetings. Oftentimes, there are issues discussed such as special assessments that would not have been caught without knowing what was discussed. Also, in my opinion, you want to stay away from smaller associations with less than 8-12 units and preferably more. You will want to stay away from 4 plex condo regimes and run from doubles that are condo conversions. You get one wackadoodle owner in a small regime and it can destroy your investment. 

I agree with both @Jonathan Bombaci and @Wendy Schultz above. You have to be careful with condos for the reasons stated above. Many condo associations are fraught with issues. Be sure to ask other condo owners how they feel about the association, the board members and their experience in dealing with them. Also find out if the condo association is approved for FHA financing, as many are not which can make it difficult to sell later if you ever choose to do so.

See here:  https://www.realtor.com/advice/buy/fha-approved-condos/

You definitely need to make sure to read all the condo docs and bylaws very carefully, and ensure that they have adequate reserves. If they do not, they can levy a special assessment for any major repairs or renovations at any time. This can equate to a substantial increase in the condo dues that could eat away any cash flow you have. Also look into the history of the condo dues... when was the last time they went up? Do they go up every year? If so, by how much?

Condos can be a good investment, but they can also be a nightmare if you don't do your due diligence very thoroughly. 

See the following links for further reading:

https://www.biggerpockets.com/blog/2012-11-15-why-condos-arent-good-real-estate-investments

https://www.biggerpockets.com/blog/are-condos-good-investments

https://www.mashvisor.com/blog/buying-a-condo-for-investment/

https://www.retirebeforedad.com/condo-as-a-rental-property-bad-idea/

https://www.landlordology.com/investing-in-condos/

@Jarrod Clavelle heeeeey!!